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ARTICLE · 11 AUGUST 2026

Lawsuit Challenging CFPB’s Revised ECOA Rule Moves Forward Under Lengthy Summary Judgment Schedule

Ballard Spahr LLP
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Advocacy groups and private companies have filed a lawsuit challenging the CFPB's elimination of disparate-impact liability under the Equal Credit Opportunity Act. The case raises fundamental questions about whether federal regulators exceeded their statutory authority in removing longstanding fair lending protections. With the amended regulations now in effect and a lengthy briefing schedule extending into 2027, the legal battle could ultimately reach the Supreme Court.

United StatesConsumer Protection
Alan Kaplinsky
Alan Kaplinsky
Richard J. Andreano, Jr.
Richard J. Andreano, Jr.
John L. Culhane, Jr.
John L. Culhane, Jr.
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On May 27, 2026, the National Fair Housing Alliance, Rise Economy, BLDS, LLC, and SolasAI filed a lawsuit in the U.S. District Court for the District of Columbia challenging the Consumer Financial Protection Bureau’s amendments to Regulation B, which implements the Equal Credit Opportunity Act (ECOA). We discussed the lawsuit shortly after it was filed in our June 2, 2026 blog post linked above.

The lawsuit challenges the CFPB’s April 22, 2026 final rule that, among other things, eliminates disparate-impact liability under ECOA, narrows the prohibition against discouraging prospective applicants from applying for credit, and modifies the requirements applicable to Special Purpose Credit Programs offered by for-profit entities. The plaintiffs contend that the CFPB exceeded its statutory authority and violated the Administrative Procedure Act (APA) in adopting the amendments.

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